--- title: “That’s Our Two Satoshis” - What Do Crypto People Still Believe In? description: Markets brace for the April 2nd tariff showdown as crypto trades on macro sentiment. Is logic out the window, or is blockchain’s future brighter than it seems? image: https://www.ar.ca/hubfs/Copy%20of%20TO2S%20375x175%20%282845%20%C3%97%201600%20px%29%20%2882%29.png --- [![email-sig-logowhite](https://www.ar.ca/hs-fs/hubfs/email-sig-logowhite.png?width=102&height=96&name=email-sig-logowhite.png "email-sig-logowhite")](https://www.ar.ca/) [![Get in Touch](https://no-cache.hubspot.com/cta/default/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3) ** ** ** [![Arca](https://www.ar.ca/hs-fs/hubfs/arca_square_576x576.png?width=60&height=30&name=arca_square_576x576.png "Arca")](https://www.ar.ca/) [![Get in Touch](https://no-cache.hubspot.com/cta/default/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3) ** ** ** Search **Menu** ** ** [![Data Room](https://no-cache.hubspot.com/cta/default/4536350/72e2934a-0f70-4634-897e-b99fd4807a9b.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/72e2934a-0f70-4634-897e-b99fd4807a9b) [![Get in Touch](https://no-cache.hubspot.com/cta/default/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3) ![](https://www.ar.ca/hubfs/Blog/Thats%20Our%202%20Satoshis/Branding/2-Sats-Header.png) [Market Recap](https://www.ar.ca/blog/tag/market-recap) | # “That’s Our Two Satoshis” - What Do Crypto People Still Believe In? [![Jeff Dorman, CFA](https://www.ar.ca/hubfs/Jeff%20Dorman.png)](https://www.ar.ca/blog/author/jeff-dorman-cfa) Written by [Jeff Dorman, CFA](https://www.ar.ca/blog/author/jeff-dorman-cfa) Mar 31, 2025 ******![Thats Our 2 Satoshis Logo](https://www.ar.ca/hs-fs/hubfs/Thats%20Our%202%20Satoshis%20Logo.png?width=300&name=Thats%20Our%202%20Satoshis%20Logo.png)****** ******![Screenshot 2025-03-31 at 8.46.15 AM](https://www.ar.ca/hs-fs/hubfs/Screenshot%202025-03-31%20at%208.46.15%20AM.png?width=642&height=417&name=Screenshot%202025-03-31%20at%208.46.15%20AM.png)****** *Source: TradingView, CNBC, Bloomberg, Messari*   **The Calm Before The Tariffs** It was a pretty slow week in the markets as most investors and traders gear up for the April 2nd tariff showdown.  The entire digital assets market is trading on nothing more than macro sentiment, and Washington policy, regardless of sector.  That statement will sound so foolish in a few years since “crypto” by itself means nothing – it is just a wrapper that now houses all types of assets in every sector, and saying that “crypto is selling off” will one day sound as stupid as saying “ETFs are lower.”  But I digress as crypto itself regresses.    Logically, it obviously makes zero sense that crypto is keying on tariffs since, by definition, crypto is probably the only industry in all of the financial markets that is NOT affected in any way by tariffs (remind me, exactly which digital goods are being taxed?).  If this is less about tariffs and more about stagflation and recession fears, well, that too should have little effect on the majority of digital asset businesses, which I’ve argued in the past are [actually quite ](https://www.coindesk.com/markets/2020/04/06/digital-assets-are-more-recession-proof-than-you-might-think)recession-proof. But logic has been thrown out the window in crypto now that the entire sector has become one large macro trading vehicle.   The only notable difference in market structure last week came from credit spreads, which are finally starting to widen a little after completely ignoring the move in gold, equities, and crypto for most of the year.     ![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXfNJLBJTdt7D8D4imw2PDdc-o0LRuHo5E8e_QeHDHyyBEwX85InekL1SWRkDNNRtHqgw881x3DKoiugNlsytJdTFZaCAVCtSwi7gL35Lt1Envn20Z6SQHbCc8ItbycsrZh_ppRYzQ?key=OOoJckEdma9rv9znmDkqFMZ0) *Source:  Fred*   That said, the 60 basis points of widening in credit spreads is fairly meaningless in the context of absolute yields for corporate borrowers, as Treasury yields have fallen by an equal amount since the peak of high rates earlier in the year. Moreover, if you look at credit spreads over the last 10 years, the recent widening barely even registers.  Another way is that if credit isn’t leading risk markets, then it still looks to me like a risk-off sentiment freak-out akin to 2013 and 2019 taper tantrums or 2018 tariff fears, rather than an actual recession fear trade.    ![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXdjwd6nH8LXrT4bf_eG6l0WcjCK8eKs0JM9BKy7c6uHykX5A77lL6rubHur9MUdbXAJ7eqcN2TlYHaQsaggh0ZfR0ldoBaxSeT-YqRrIe1Y8dPT9jkPejbJ49O2746zRlyhpV2cqQ?key=OOoJckEdma9rv9znmDkqFMZ0) *Source:  Fred*   **Is Anyone Still Excited About Blockchain?**It feels pretty dark in the crypto industry right now.  It is not necessarily more or less than in other periods of declining price action over the past 10 years, but it is definitely a bit different.  Perhaps the misery lies in the fact that crypto is still in a binary state (what we call the [crypto investing paradox](https://www.ar.ca/blog/thats-our-two-satoshis-03-04-19)), and everyone (including ourselves) assumed that this industry would have made more progress towards advancing out of the doldrums given the excitement and positive change from Washington. Or perhaps it’s because crypto participants have always been on the defensive, and that’s just exhausting.    ![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXfCs5ZLcyrBqW1ph2hhGRR-RWdF34ZonN7gDeHKxySwbjOLk-eVXXtFLUrG2-Nd8Wapzch0PUP1vlV4sC5I-6G4OQyn1Nr2Z0SlypDZeg49z9sVDdhK766Lrd6Zti3OIzd98Umu1Q?key=OOoJckEdma9rv9znmDkqFMZ0) *Source:  *[*X / Twitter*](https://x.com/neilchristense6/status/1905702896521613815?s=46&t=e_HO6YZP2lhbFDHG5e0fKQ) But in lieu of any interesting crypto-specific news last week, we took some time polling other funds, OTC desks, exchanges, and other professionals working in crypto about what they are most excited about.    We asked hundreds of close friends of Arca the following questions:   ***“Name 5 things that could happen in our space that would be interesting and valuable to end users”***   ***“What could happen that would be a big net win for the industry?*** “   ***“How do we reject modernity (financial nihilism) and embrace tradition (cypherpunk, decentralized, collaborative products)?***”   Below are a few of our favorite responses.    - **AI Agent Swarms** - This includes: - Data verification - Inference verification - Permissioned context sharing amongst agents but not amongst users (data clean rooms) ability to transact on behalf of the user Blockchains can solve a lot of these problems.  Agentic/robotic / AI economies will emerge and they will have more participants and more transactions than the current meat space economies. So, if data marketplaces are already extremely valuable, then they are likely to become more valuable over time.  Data ownership again falls into the lap of blockchain. Financial applications will also benefit from AI – for instance, using swarms to transact, leading to permissionless execution for end users’ financial goals.   - **Memberships**:  Memberships to just about anything can be owned as NFTs. Think Mercedes Club, classic car clubs, gyms, restaurants akin to Flyfishclub, etc. Holders have a right to lease their membership, rent a classic car for a weekend, eat at a more exclusive part of a restaurant, etc. - **Health care on chain** - Beyond tokenizing health records (which would be great), there are supply chain applications for areas of medical devices, medical materials (vaccines), and medications. Again, these aren’t issues we regularly face, but there is a lot of fraud with all of these items AND issues tracking their origins that can have lasting impacts on healthcare outcomes. - **Unlocking emerging markets** - Outside the U.S., markets are often inefficient, and small to medium-sized businesses are often unable to get loans and other financing. DeFi products that don’t discriminate based on location, gender, appearance, or any factors other than the safety of the collateral and the creditworthiness of the borrower can open up non-U.S. markets. Developing robust decentralized identity solutions that allow individuals to own and control their personal data and reputation across platforms would enable seamless access to services without relying on centralized authorities or credit scores, enhancing privacy and security. - **Stablecoin growth and adoption**: Stablecoins are interesting to the TradFi players partly because collateral movement and management will essentially be solved by 24/7 crypto rails.  But that is just your decentralized and collaborative doorway. If banks want to make money mobile between them on-chain at all hours of the day, then that means money is also going to be properly programmable on-chain and accessible to the whole crypto ecosystem. Once JPM is moving your paycheck on-chain, who's to stop some project from launching a decentralized mortgage? And why would you need payday lenders if you can get paid micropayments by the hour? - **Stocks and other financial assets on-chain** - The term “RWA” gets thrown around too much right now, but it only really refers to private credit and tokenized Treasuries thus far.  The real growth in blockchain happens when we get stocks and bonds and real estate on-chain for investors who do not want to offboard old incumbent TradFi brokers.  This includes: - Self-custodial stablecoin savings account (automated yield-bearing stablecoin) with Visa / MC and Apple Pay integration - Overcollateralized BTC-backed mortgages A lot of society now recognizes that banks are quite limited in what they can offer, and many want a smoother, full-encompassing financial service while retaining almost all of the self-sovereignity of their capital.  Many in the industry want a DeFi bank where people can quickly go back and forth between traditional rails and crypto rails, move their assets in and out, pay bills, pay a mortgage, build credit, take out a loan, pay for college, etc.  Banks are just big intermediaries that get paid a ton of money to hold your cash while sharing little of the yield with you, but the workflows and integrations (and FDIC insurance) have trapped most consumers.  DeFi can unlock all of the capital that is trapped in traditional banks.   ***And That’s Our Two Satoshis! ****Thanks for reading everyone! Questions or comments, just let us know.*   **The Arca Portfolio Management Team** *Jeff Dorman, CFA - Chief Investment Officer* *Katie Talati - Director of Research* *Sasha Fleyshman - Portfolio Manager* *David Nage - Portfolio Manager* *Wes Hansen - Director of Trading and Operations* *Michal Benedykcinski - Senior Vice President, Research* *Alex Woodard - Associate, Research* *Christopher Macpherson - Research Analyst* *Andrew Masotti - Associate, Trading and Operations* *Joey Reinberg, Associate, Trading and Operations*     **To learn more or talk to us about investing in digital assets and cryptocurrency** **call us now at [(424) 289-8068](tel:+14242898068).** ### Subscribe For the Latest Blockchain News & Analysis     Disclaimer: This commentary is provided as general information only and is in no way intended as investment advice, investment research, legal advice, tax advice, a research report, or a recommendation. Any decision to invest or take any other action with respect to any investments discussed in this commentary may involve risks not discussed, and therefore, such decisions should not be based solely on the information contained in this document. Please consult your own financial/legal/tax professional. Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services. Previous Story [← “That’s Our Two Satoshis” - The Case for Token Buybacks](https://www.ar.ca/blog/the-case-for-token-buybacks) [** ](https://www.ar.ca/blog) Next Story [“That’s Our Two Satoshis” - Bitcoin’s Relative, Short-Lived Outperformance →](https://www.ar.ca/blog/bitcoins-relative-short-lived-outperformance) ## You May Also Like These Stories on Market Recap [![](https://www.ar.ca/hubfs/Two%20sats%20July%206%202026.png) ](https://www.ar.ca/blog/crypto-green-shoots-are-sprouting) [Market Recap](https://www.ar.ca/blog/tag/market-recap) ### [Crypto Green Shoots Are Sprouting](https://www.ar.ca/blog/crypto-green-shoots-are-sprouting) Jul 6, 2026 | 1 min read [![](https://www.ar.ca/hubfs/Two%20sats%20June%2029%202026%20%281%29.png) ](https://www.ar.ca/blog/securitize-the-most-important-rwa-stock-no-one-has-heard-about-yet) [Market Recap](https://www.ar.ca/blog/tag/market-recap) ### [Securitize - The Most Important RWA Stock No One Has Heard About Yet](https://www.ar.ca/blog/securitize-the-most-important-rwa-stock-no-one-has-heard-about-yet) Jun 29, 2026 | 1 min read [![](https://www.ar.ca/hubfs/_Two%20sats%20June%2022%202026.png) ](https://www.ar.ca/blog/galaxy-digital-glxy-how-a-distressed-mining-site-buyout-became-both-a-pot-of-gold-and-an-identity-crisis) [Market Recap](https://www.ar.ca/blog/tag/market-recap) ### [Galaxy Digital (GLXY): How a Distressed Mining Site Buyout Became Both a Pot of Gold and an Identity Crisis](https://www.ar.ca/blog/galaxy-digital-glxy-how-a-distressed-mining-site-buyout-became-both-a-pot-of-gold-and-an-identity-crisis) Jun 22, 2026 | 1 min read ### Arca Los Angeles I New York (424) 400-7444 info@ar.ca [![LinkedIn](https://www.ar.ca/hubfs/LinkedIn.png "LinkedIn")](https://www.linkedin.com/company/arcafinance/mycompany/) [![Twitter](https://www.ar.ca/hubfs/Twitter.png "Twitter")](https://twitter.com/arca) [![Youtube](https://www.ar.ca/hubfs/Youtube.png "Youtube")](https://www.youtube.com/c/Arcafinance) ### Contact Us Copyright © 2025 Arca Holdings. All Rights Reserved.  |  [Important Disclosures](https://www.ar.ca/important-disclosures) ```json { "@context" : "http://schema.org", "@type" : "VideoObject", "contentUrl" : "https://youtu.be/hHdcrzD7_0w", "description" : "Meet the founders of Arca and learn about what inspired them to join the digital asset ecosystem. Rayne Steinberg – Co-Founder & Chief Executive Officer Jeff Dorman – Co-Founder & Chief Investment Officer Phil Liu – Co-Founder & Chief Legal Officer.", "duration" : "PT4M13S", "embedUrl" : "https://www.youtube.com/embed/hHdcrzD7_0w", "name" : "Meet the Founders of Arca", "thumbnailUrl" : "https://i.ytimg.com/vi/hHdcrzD7_0w/default.jpg", "uploadDate" : "2022-02-15T15:49:56Z" } ``` ```json { "@context" : "https://schema.org", "@type" : "SiteNavigationElement", "Name" : [ "HOME", "Hedge-Funds", "Bitcoin-Fund", "Blog", "About", "Team", "Careers", "Data Room", "Get in Touch" ], "Url" : [ "https://www.ar.ca/", "https://www.ar.ca/arca-hedge-funds", "https://www.ar.ca/ai-bitcoin-fund", "https://www.ar.ca/blog", "https://www.ar.ca/about", "https://www.ar.ca/arca-team", "https://www.ar.ca/careers", "https://arcafunds.hvstprivate.com/", "https://www.ar.ca/contact?hsCtaTracking=28ac2c2f-186c-436f-9682-1169cf946ad3%7C63e370f0-aacd-4463-8bce-3616a7b4b7f3" ] } ``` ```json { "@context" : "https://schema.org/", "@type" : "WebSite", "name" : "Ar", "potentialAction" : { "@type" : "SearchAction", "query-input" : "required name=search_term_string", "target" : "https://www.ar.ca/search?q={search_term_string}" }, "url" : "https://www.ar.ca/" } ``` ```json { "@context" : "https://schema.org/", "@type" : "WebPage", "name" : "Ar", "speakable" : { "@type" : "SpeakableSpecification", "xpath" : [ "/html/head/title", "/html/head/meta[@name='description']/@content" ] }, "url" : "https://www.ar.ca/" } ``` ```json { "@context" : "https://schema.org", "@type" : "Organization", "alternateName" : "Ar", "logo" : "https://www.ar.ca/Logo.png", "name" : "Ar", "url" : "https://www.ar.ca/" } ``` ```json { "@context" : "https://schema.org", "@id" : "", "@type" : "LocalBusiness", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "New York", "addressRegion" : "CA", "postalCode" : "90066", "streetAddress" : "Los Angeles" }, "geo" : { "@type" : "GeoCoordinates", "latitude" : 33.9697897, "longitude" : -118.2468148 }, "image" : "https://www.ar.ca/hs-fs/hubfs/email-sig-logowhite.png?width=102&name=email-sig-logowhite.png", "name" : "Arca", "openingHoursSpecification" : { "@type" : "OpeningHoursSpecification", "closes" : "23:59", "dayOfWeek" : [ "Monday", "Tuesday", "Wednesday", "Thursday", "Friday", "Saturday", "Sunday" ], "opens" : "00:00" }, "priceRange" : "$", "sameAs" : [ "https://twitter.com/arca", "https://www.linkedin.com/company/arcafinance" ], "telephone" : "(424) 400 7444", "url" : "https://www.ar.ca/" } ``` ```json { "@context" : "http://schema.org", "@type" : "VideoObject", "description" : "Rebecca Rettig, General Counsel of Aave Marc Boiron, General Counsel of dYdX Colleen Sullivan, Co-founder and CEO of CMT Digital Marvin Ammori, CLO at Uniswap Phil Liu, Co-founder and CLO of Arca", "duration" : "PT50M59S", "embedUrl" : "https://www.youtube.com/embed/hTc-kWa9hM8", "interactionCount" : "121", "name" : "Regulation: Clarity on the Horizon", "thumbnailUrl" : "https://i.ytimg.com/vi/hTc-kWa9hM8/default.jpg", "uploadDate" : "2021-05-26T13:29:46Z" } ``` ```json { "@context" : "http://schema.org", "@type" : "VideoObject", "description" : "Andrew Peel, Head of Digital Asset Markets at Morgan Stanley Jennifer Murphy, COO of Western Asset Management Tom Jessop, President of Fidelity Digital Assets Tim Davis, Principal of Deloitte Subhanker Sinha, Head of Blockchain, Digital at BNY Mellon", "duration" : "PT47M54S", "embedUrl" : "https://www.youtube.com/embed/Wx1LEII47iM", "interactionCount" : "242", "name" : "The Current Institutional Adoption Wave", "thumbnailUrl" : "https://i.ytimg.com/vi/Wx1LEII47iM/default.jpg", "uploadDate" : "2021-05-26T15:15:41Z" } ``` ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Organization", "name" : "Ar" }, "dateModified" : "2021-07-12", "datePublished" : "2021-06-28", "description" : "Blockchain commentary and analysis written for sophisticated investors - by professional investors", "headline" : "We Should Appreciate Bitcoin More, but it’s Not Defensive", "image" : "https://f.hubspotusercontent00.net/hub/4536350/hubfs/Thats%20Our%20Two%20Sathoshis%20%2812%29-2.png?width=380&name=Thats%20Our%20Two%20Sathoshis%20%2812%29-2.png", "mainEntityOfPage" : { "@id" : "https://www.ar.ca/blog", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.ar.ca/hs-fs/hubfs/email-sig-logowhite.png?width=102&name=email-sig-logowhite.png" }, "name" : "Market Recap" } } ```